Fiscal Cliff in Plain English

You may have seen this before, but it needs seeing again and again and again…..  Here’s the USA’s fiscal problem made easy:

  • U.S. Tax revenue:                                       $2,170,000,000,000
  • Fed budget:                                                  $3,820,000,000,000
  • New debt:                                                    $1,650,000,000,000
  • National debt:                                             $16,440,000,000,000
  • Recent budget cuts:                                  $38,500,000,000

Let’s now remove 8 zeros and pretend it’s a household budget:

fiscal_cliff_explainer_rect

  • Annual family income:                               $21,700
  • Money the family spent:                           $38,200
  • New debt on the credit card:                  $16,500
  • Outstanding balance on credit card:     $164,400
  • Total budget cuts so far:                           $385

Got It?  OK now here’s another way to look at the ‘Debt Ceiling':

Let’s say you come home from work and find there’s been a sewer backup in your neighborhood….AND your home has sewage all the way up to your ceilings.

What do you think you should do???…..  Raise the ceilings?  OR, REMOVE IT?

Let us know by leaving a comment below, sending us a Tweet, or commenting on our Facebook Fan Page. Also remember to sign up for Stocks on Wall Street’s Monthly Newsletter!

Filed Under: Consumer Goods | Financials | U.S. Politics | World Politics | Other Investment Related NewsFeaturedStock Market TodayStock Trades

Tags:

RSSComments (0)

Trackback URL

Comments are closed.